{"id":214125,"date":"2022-05-18T09:16:06","date_gmt":"2022-05-18T16:16:06","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=214125"},"modified":"2022-05-18T09:52:25","modified_gmt":"2022-05-18T16:52:25","slug":"barron-real-estate-fund-positive-on-select-casino-stocks","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/barron-real-estate-fund-positive-on-select-casino-stocks\/","title":{"rendered":"Baron Real Estate Fund Adds Sands, Bullish On Other Casino Stocks"},"content":{"rendered":"

The Baron Real Estate Income Fund, one of the best-performing actively managed real estate funds, added shares of Las Vegas Sands (NYSE:LVS) in the first quarter. It remains constructive on several other casino stocks in its portfolio.<\/p>\n

\"casino
Baron Real Estate Income Fund manager Jeffrey Kolitch. He’s bullish on some casino stocks. (Image: Barron’s<\/em>)<\/figcaption><\/figure>\n

In the first three months of 2022, the fund purchased 3.2 million shares of Sands, making the gaming name one of five additions to the portfolio and joining other well-known professional investors<\/a> in adding shares of the downtrodden gaming equity in the March quarter.<\/p>\n

We believe Las Vegas Sands’ market-leading resorts in Macau and Singapore position the company for strong growth when travel and tourism spending rebound. Las Vegas Sands maintains a liquid and investment grade balance sheet and is currently valued at a significant discount to our assessment of replacement cost,\u201d<\/strong> writes portfolio manager Jeffrey Kolitch in a letter to investors.<\/p><\/blockquote>\n

This isn\u2019t the fund\u2019s first encounter with the casino stock. LVS currently doesn\u2019t own any domestic integrated resorts, but Baron Real Estate has the flexibility to add companies that aren\u2019t dedicated real estate equities. Sands, like other gaming names, is classified as a consumer discretionary company.<\/p>\n

Baron Bullish on Other Las Vegas Casino Stocks<\/h2>\n

The Baron Real Estate Income Fund owns several other gaming names and has exposure to \u201ccyclical REIT and other real estate income-producing stocks such as travel and hospitality-related real estate stocks that had declined sharply from 2021 share price highs but possess the potential to appreciate significantly over the new few years,\u201d adds Kolitch.<\/p>\n

\n

Examples include Boyd Gaming (NYSE:BYD) — a top 10 holding in the fund — and MGM Resorts International (NYSE:MGM). While MGM leases all of the properties on which its gaming venues reside, Boyd owns essentially all of its real estate. That includes an extensive portfolio<\/a> of downtown and off-Strip properties in Las Vegas. Some analysts argue Boyd\u2019s real estate holdings aren\u2019t adequately reflected in the share price, indicating the stock is arguably undervalued.<\/p>\n<\/div>\n

\u201cBusiness conditions remain strong, yet the shares are valued at only 7.0 times 2022 estimated cash flow and a double-digit free cash flow yield relative to its long-term average of more than 9 times cash flow,\u201d Kolitch said in reference to the Orleans operator.<\/p>\n

Regarding MGM, the portfolio manager estimates that stock is worth $60 on a sum-of-the-parts basis, which implies significant appreciation potential from the $33 area at which the shares currently reside.<\/strong><\/p>\n

Baron Likes Red Rock, Too<\/h2>\n

Red Rock Resorts (NASDAQ:RRR) is another one of the casinos stocks on the Baron Real Estate roster and it\u2019s one Kolitch views as undervalued<\/a>.<\/p>\n

\u201cPrivate equity firms continue to acquire casino gaming real estate assets in Las Vegas and are paying 16 to 20 times cash flow, yet the Fund’s holdings in Red Rock Resorts and MGM Resorts (both with significant Las Vegas exposure) are currently valued at only 7.5 to 10 times cash flow,\u201d <\/strong>says the portfolio manager.<\/p>\n

Red Rock\u2019s Las Vegas portfolio includes 10 large-scale gaming venues and 10 smaller casinos, which are within five-mile commutes of 90% of the city\u2019s population. Like rival Boyd, Red Rock owns essentially all of its real estate. It also controls \u201cseven highly desirable gaming-entitled development sites consisting of approximately 428 acres in Las Vegas and Reno,\u201d according to the operator\u2019s investor relations web site.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Baron Real Estate Income Fund, one of the best-performing actively managed real estate funds, added shares of Las Vegas Sands (NYSE:LVS) in the first quarter. It remains constructive on several other casino stocks in its portfolio. In the first three months of 2022, the fund purchased 3.2 million shares of Sands, making the gaming […]<\/p>\n","protected":false},"author":46,"featured_media":214126,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,81886],"tags":[],"acf":[],"yoast_head":"\nBarron Real Estate Fund Positive On Select Casino Stocks<\/title>\n<meta name=\"description\" content=\"Las Vegas Sands, other casino stocks are among favorites in this real estate fund.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Barron Real Estate Fund Positive On Select Casino Stocks\" \/>\n<meta property=\"og:description\" content=\"Las Vegas Sands, other casino stocks are among favorites in this real estate fund.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/barron-real-estate-fund-positive-on-select-casino-stocks\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-18T16:16:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-05-18T16:52:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/jk2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/barron-real-estate-fund-positive-on-select-casino-stocks\/\",\"url\":\"https:\/\/www.casino.org\/news\/barron-real-estate-fund-positive-on-select-casino-stocks\/\",\"name\":\"Barron Real Estate Fund Positive On Select Casino Stocks\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/barron-real-estate-fund-positive-on-select-casino-stocks\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/barron-real-estate-fund-positive-on-select-casino-stocks\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/jk2.jpg\",\"datePublished\":\"2022-05-18T16:16:06+00:00\",\"dateModified\":\"2022-05-18T16:52:25+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Las Vegas Sands, other casino stocks are among favorites in this real estate fund.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/barron-real-estate-fund-positive-on-select-casino-stocks\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/barron-real-estate-fund-positive-on-select-casino-stocks\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/barron-real-estate-fund-positive-on-select-casino-stocks\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/jk2.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/jk2.jpg\",\"width\":1280,\"height\":1280,\"caption\":\"Baron Real Estate Income Fund manager Jeffrey Kolitch. He's bullish on some casino stocks. 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